Electronic Commerce Systems

e-Commerce trendse-Commerce processes

e-Commerce success factorse-Commerce categories

Chapter

8

McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.

8-2

Electronic Commerce

More than just buying and selling products online

Includes the entire online process of Developing, marketing, selling, delivering, servicing and paying for products and services

8-3

Categories of e-Commerce

Business-to-Consumer (B2C) – businesses develop electronic marketplaces to sell products and services to consumers

Business-to-Business (B2B) – involves both electronic business marketplaces and direct market links between businesses

Consumer-to-Consumer (C2C) – online auctions where consumers can buy and sell with each other

8-4

Essential e-commerce process architecture

8-5

Access Control and Security

E-commerce processes must establish secure access by authenticating users and authorizing access

8-6

Profiling and Personalizing

Gather data on you and your website behavior and choices. Build electronic profiles of your characteristics and preferences

One-to-one marketing strategy

8-7

Search Management

Search processes that helps customers find the specific product or service they want to evaluate or buy

8-8

Content and Catalog Management

Content Management – software that helps companies develop, generate, deliver, update, and archive data at e-commerce websites

Catalog Management – software that helps generate and manage catalog content

8-9

Workflow Management

Software that helps employees electronically collaborate to accomplish structured work tasks within knowledge-based business processes

8-10

Event Notification

Respond to events such as customer’s first website access, payment, delivery and problem

Event notification software monitors e-commerce processes

8-11

Collaboration and Trading

Processes that support the vital collaboration arrangements and trading services

Online communities of interestBlog, E-mail, chat, and discussion

groups

8-12

Electronic Payment Processes

Web Payment ProcessesShopping cart processCredit card payment process

Electronic Funds Transfer (EFT) Capture and process money and

credit transfers between banks and businesses and their customers

8-13

Section II e-Commerce Trends

8-14

e-Commerce Success Factors

Selection and ValueAttractive product selections, competitive prices,

satisfaction guarantees, and customer support after the sale

Performance and ServiceFast, easy navigation, shopping, and purchasing,

and prompt shipping and deliveryLook and Feel

Attractive web storefront, website shipping areas, multimedia product catalog pages, and shopping features

8-15

e-Commerce Success Factors

Advertising and IncentivesTargeted web page advertising and e-mail

promotions, discounts and special offers, including advertising at affiliate sites

8-16

e-Commerce Success Factors

Personal AttentionPersonal web pages, personalized product

recommendations, Web advertising and e-mail notices, and interactive support for all customers

Community Relationships Virtual communities of customers, suppliers,

company representatives, and others via newsgroups, chat rooms, and links to related sites

Security and ReliabilitySecurity of customer information and website

transactions, trustworthy product information, and reliable order fulfillment

8-17

Developing a Web Store

Build websiteUse simple website design toolsPredesigned templatesBuild your own website or use outside contractor

Market website to attract visitors and transform them into loyal customers

8-18

Serving Customers

Serve customers by creating user profiles, personal Web pages and promotions that help develop a one-to-one relationship

Transact with customers by providing an attractive, friendly, and efficient Web store

Support customers withSelf-help menus, tutorials, FAQs E-mail correspondence with customer service

representatives

8-19

Managing a Web Store

Manage both the business and the websiteRecord and analyze traffic, inventory and salesLink to accounting system

Operate twenty-four hours a day, seven days a week

Protect transactions and customer records, use firewalls, and repel hacker attacks

8-20

B2B e-Commerce

B2B e-commerce is the wholesale and supply side of the commercial process, where businesses buy, sell, or trade with other businesses.

Factors for building a successful retail website also apply to websites for B2B e-commerce.

8-21

e-Commerce Marketplaces

One to Many – sell-side marketplaces host one major supplier who dictates product catalog offerings and prices

Many to One – buy-side marketplaces attract many suppliers that flock to these exchanges to bid on the business of a major buyer

Some to Many – distribution marketplaces unite major suppliers who combine their product catalogs to attract a larger audience of buyers

8-22

e-Commerce Marketplaces

Many to Some – procurement marketplaces unite major buyers who combine their purchasing catalogs to attract more suppliers and thus more competition and lower prices

Many to Many – auction marketplaces used by many buyers and sellers that can create a variety of buyers’ or sellers’ auctions to dynamically optimize prices

8-23

e-Commerce Portals

B2B e-commerce portal can provide several types of marketplaces in one site

Often developed and hosted by third-party market-maker companies who serve as infomediaries that bring buyers and sellers together in catalog, exchange, and auction markets.

8-24

Clicks and Bricks

Should we integrate our e-commerce business operations with our traditional physical business operations

Or should we keep them separate?

8-25

e-Commerce Channel

The marketing or sales channel created by a company to conduct and manage its chosen e-commerce activities

Issue is whether the e-commerce channel should be integrated with traditional sales channel.